Ramit Sethi, New York Times bestseller and founder of I Will Teach You To Be Rich, is well-known for providing information on how to build wealth. He regularly talks about the importance of automatic investing and how you can spend confidently without having to cut back on all of life’s indulgences.
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On his YouTube channel, Sethi recently broke down the seven most common money habits that hold people back from leading a rich life. He explained in “These 7 Money Habits Keep You Stuck” how many people fall into money traps that leave them unfulfilled and unable to change their financial situation.
He noted that one of the biggest problems most people face is continuing to “play defense” with their money instead of playing offense. Here is how “playing defense” with money is hurting you, according to Ramit Sethi, and tips from our experts on how to play offense instead.
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Stop Worrying About Things You Can’t Control
Ramit Sethi told his 453,000 subscribers that playing defense with their money will not help them build wealth. He said he gets “emails from people that are worried about what the Fed is going to do.” They would frequently ask whether their investment would return 7% or 7.1%. But Sethi said consumers are focusing on the wrong thing since it is out of their control.
He added, “Because they spend time worrying about things that are uncontrollable, they neglect things that they actually can influence.”
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Don’t Check Your Financial Accounts Daily
Sethi said a major red flag is when people tell him they check their financial accounts daily. He explained that he doesn’t have financial apps on his phone, and neither should the average consumer. He advises that there is no reason to log into your accounts daily if you have set your money up automatically. He noted when people do this, they are “[p]laying small and playing defense with their money.”
If someone logs into their account daily, he said it tells him three things. They:
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Don’t feel in control of their money.
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Don’t have a financial system in place.
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Are obsessed with the minutiae.
“Checking your bills every single day is not going to lead to your rich life,” Sethi said. “That is too small for you to be focusing on, and frankly, a computer can do that better than you ever could.”